Board Of Supervisors — Thursday, October 1, 2026

Memorandum Date: October 1, 2026 To: The Honorable Lake County Board of Supervisors From: Susan Parker, County Administrative Officer Stephen L. Carter, Jr., Assistant County Administrative Officer Casey Moreno, Deputy County Administrative Officer Subject: 9:00 A.M. - PUBLIC HEARING - Consideration of the Final Recommended Budget for Fiscal Year 2026-2027 for the County of Lake and Special Districts Governed by the Board of Supervisors (Continued from 9/29/2026 at 9:00 A.M.) Executive Summary: We are pleased to present, for your Board’s consideration, the Fiscal Year (FY) 2026-27 Final Recommended Budget. Pursuant to your Board’s direction during Tuesday’s Hearing: 1) all verbal changes made during that September 29, 2026, Hearing, will be incorporated in the Budget presented for your consideration Thursday, October 1; 2) all vacant positions within General Fund Budget Units will be labeled as Unfunded on the Position Allocation Chart; and, 3) pursuant to your Board’s interest in preserving flexibility in the face of uncertain conditions, any Salary Savings resulting from designating vacant General Fund positions, “Unfunded,” will added to Budget Unit 7999, Contingencies. For your Board’s (and the public’s) situational awareness, during Thursday’s (October 1, 2026) Public Hearing, Administrative Office staff will project budgetary information using Schedule 9 and Schedule 15 forms customarily sent to the State by the Auditor-Controller. This approach was necessary to meet your Board’s timeline (and the State filing deadline of October 2, 2026). Below, you will find high-level updates to the information provided in our June 15, 2026, Recommended Budget Memorandum, which is likewise attached to your agenda packet, for reference, as much of its own content remains applicable. This summative information is substantively unchanged from the Memorandum included with Agenda Packet for Tuesday’s Hearing (some minor formatting changes were made, and a typographical error was caught). Fund Balance Available (carry-over): Administrative received initial Fund Balance Available (FBA) data in early September, but data regarding uncompleted contracts (e.g., contracts obligating future expenditure of County funds) was not included in that first draft, and became available only after the primary budget documents were printed; as a result, adjustments are necessary to bring the budget back into balance. Specific to General Fund, FBA was less than budgeted. Therefore, General Fund budgets need to be reduced by 9% to balance with anticipated revenues and carry-over (i.e., FBA). After careful review, and in consideration of Lake County’s lengthy history of avoiding sudden cuts that could result in staff furloughs or loss of positions, General Fund budgets were reduced by 5% with the remaining 4% drawn from Contingencies (Budget Unit 7999). American Rescue Plan Act (ARPA) also known as State and Local Fiscal Recovery Funds (SLFRF): The County received $12,506,226 in 2021. Of that total, $11,707,409 has been spent or transferred to non-General Fund departments. The remaining $798,817 is budgeted and will be compliantly expended not later than December 31, 2026. Remaining Projects with ARPA funds: Budget Unit Project Approved Remaining 1778 Kelseyville Senior Center 460,702 104,513 1892 Broadband Action Plan 300,000 55,000 1892 Housing Strategic Plan 265,000 11,510 1892 Economic Development Strategic Plan 266,000 153,876 2702 General Plan Update 1,600,000 113,558 7011 Middletown Park 100,000 100,000 8593 Special Districts Tertiary Treatment Plant 300,000 10,665 8695 Special Districts Studies 200,000 193,570 8695 Special Districts Dump Site for Haulers 400,000 50,958 Property tax: Property Tax Revenues increased by $1,220,638 (3.76%) in FY 2025-26. FY 2024-25 Property Tax Revues Totaled $32,453,558. The 2025-26 figure was $33,674,196. Sales Tax: Bradley-Burns (1%) Sales Tax revenues received in FY 2025-26 equaled $4,112,236 (a decrease of $635,082 from FY 2024-25). Prop 172 Sales Tax revenues for FY 2025-26 equaled $4,172,868 (an increase of $124,868 compared to FY 2024-25). Transient Occupancy Tax: Transient Occupancy Tax (TOT) revenues totaled $1,205,092 in FY 2025-26, a decrease of $17,899 compared to FY 2024-25. Cannabis Tax: Cannabis Tax revenues totaled $3,924,693 in FY 2025-26, an increase of $421,149 from FY 2024-25. Reserves: At this time, staff does not recommend increasing or decreasing General Fund reserves. As your board is aware, the Technology Reserve loaned Behavioral Health $3,000,000 in FY 2023-24. $1,000,000 was repaid in FY 2024-25, with the remaining $2,000,000 in payments anticipated over the next 7 years. Capital Assets: The FY 2026-27 Final Recommended Budget includes funding for a number of Capital Projects, many of which are supported by grants or other special funding. These include, but are not limited to: New Projects Amount South Main St Rehab Project- Roads $6,750,000 Soda Bay Rehab Project- Roads $2,250,000 Kelseyville Sidewalk Project-Roads $41,000 Existing Projects Previous Adjustment Current Amount Remodel-District Attorney $100,000 -$100,000 $0 Remodel New Facility-Probation $220,599 $312,973 $533,572 Bridge Prevention Maint. Prog., Rehab-Roads $15,000 $659,000 $674,000 Bridge Prevention Maint. Prog., Scour-Roads $15,000 $129,000 $144,000 Requested position changes since recommended budget: (1) Public Works Director – BU 1903 (Changed to Flex) 1 Public Works Director I/II – BU 1903 (Changed to Flex) (1) Deputy Public Works Director-Maintenance – BU 1903 (Changed to Facilities) 1 Deputy Public Works Director-Facilities – BU 1903 (Changed from Maintenance) (1) Deputy Public Works Director-Operations – BU 1903 (Moved to BU 4121) (2) Deputy Sheriff I/II – BU 2201 (Directly Referenced as Cannabis-Focused) 2 Deputy Sheriff I/II (Cannabis)– BU 2201 (Directly Referenced as Cannabis-Focused) (1) Deputy Director of Public Health – BU 4011 (a decrease of 1 FTE) 1 Health Services Program Manager – BU 4011 (an increase of 1 FTE) (1) Peer Support Specialist LatinX – BU 4014 (Reclass to Peer Support Specialist, Senior) (1) Peer Support Specialist Native American – BU 4014 (Reclass to Peer Support Specialist, Senior) 2 Peer Support Specialist, Senior – BU 4014 (Changed from LatinX and Native American) (3) Substance Abuse Programs Coordinator – BU 4015 3 Substance Use Disorder Programs Coordinator – BU 4015 (13) Substance Abuse Counselor I/II/III/Sr. – BU 4015 13 Substance Use Disorder Counselor I/II/III/Sr. – BU 4015 1 Deputy Public Works Director-Operations – BU 4121 (Moved from BU 1903) These proposed changes result in no net increase or decrease in County positions. Fiscal Impact: Your approval of this Recommended Final Budget will enable the County to meet its statutory obligations and continue operations for FY 2026-27. If not budgeted, fill in the blanks below only: Estimated Cost: ________ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________ Purchasing Considerations (check all that apply): ☒ Not applicable ☐ Fully Article X.- and/or Consultant Selection Policy-Compliant (describe process undertaken in “Executive Summary”) ☐ Section 2-38 Exemption from Competitive Bidding (rationale in “Executive Summary,” attach documentation, as needed) ☐ For Technology Purchases: Vetted and Supported by the Technology Governance Committee (“Yes,” if checked) ☐ Other (Please describe in Executive Summary) Consistency with Vision 2028 (check all that apply): ☐ Not applicable ☒ Well-being of Residents ☒ Public Safety ☒ Disaster Prevention, Preparedness, Recovery ☒ Economic Development ☒ Infrastructure ☒ County Workforce ☒ Community Collaboration ☒ Business Process Efficiency ☒ Clear Lake Recommended Action: 1) Adopt the Resolution Adopting the Final Recommended Budget for Fiscal Year 2026-27 as detailed in the attached, incorporating any changes desired by your Board following budget hearings. 2) Adopt the Resolution Establishing New Classifications, the Effective Date Thereof, and Amending the Position Allocation Chart for Fiscal Year 2026-27 to Conform to the Adopted Budget.